The monthly Commonwealth Bank Household Spending Intentions (HSI) series, data to end-November, shows a very modest response to the policy stimulus, both monetary and fiscal, that has been applied to the economy through 2019. The weakness in the HSI indicators is centred on spending on ‘goods’, which continues to track sideways at low levels. In contrast, spending on ‘experiences’ is generally trending higher. Data for November showed a pause in the sharp upward trend in Home Buying intentions, but still at high levels. Retail sales spending intentions are bouncing around at low levels – with the recent increase in disposable income finding its way into savings, rather than spending. Travel and Entertainment spending intentions continue to improve slowly – as do Motor Vehicle spending intentions from a low base. Both Health & Fitness and Education spending intentions have turned down recently.
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